Operations

Pilar Mine

Overview

Reserves and Resources

Technical Report

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Overview

The Pilar mine is a complex of producing underground mines located in Goiás State in central Brazil, approximately 320 km from the federal capital of Brasilia. The total land package consists of approximately 17,800 ha and the project area is easily accessible by road and air.

Pilar achieved commercial production in October 2014 and the primary mining methods are modified room and pillar and long hole open stoping. The processing plant is a conventional milling, gravity, and carbon-in-pulp (CIP) circuit with a capacity of 1.0M tpa.

Geology and Mineralization

The Pilar property covers the Guarinos and Pilar Greenstone Belts and a portion of the Moquém gneissic complex. The Guarinos Greenstone Belt is represented by a succession of basic rocks, mostly basalt and amphibolite, and by metasedimentary layers, related to inter-flow sedimentary events. Chlorite-quartz-garnet-schist is also present. The main structure is the Carroça Shear Zone, a reverse-dextral major shear zone, parallel to the main regional foliation with several kilometres of strike length. The shear has a mylonitic fabric and an associated 400 m wide hydrothermal alteration zone.

Reserves and Resources

Mineral Resources (May 31, 2018)

Category

Tonnes (kt)

Gold grade (g/t)

Contained gold (koz)

Measured

2,389

3.50

269

Indicated

13,479

2.13

922

Total Measured and Indicated

15,868

2.33

1,191

Inferred

20,399

3.21

2,108

Notes:

CIM (2014) definitions were followed for Mineral Resources.

Mineral Resources are estimated at a cut-off grade of 2.0 g/t Au except the Três Buracos open pit resource which used a cut-off grade of 0.5 g/t Au

Mineral Resources at the Pilar mine, Maria Lázara mine and Três Buracos deposit are estimated using a long-term gold price of US$1,500 per ounce, and an exchange rate of US$1.00 = R$3.70.

Bulk density of 2.77 t/m3 is used at the Pilar mine and 2.76 t/m3 at the Maria Lázara mine. At the Três Buracos deposit, density values used were 2.35 t/m3 (oxide) and 2.77 t/m3 (fresh rock).

Mineral Resources are inclusive of Mineral Reserves.

Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

Mineral Reserves are estimated using an average long-term gold price of US$1,200 per ounce and an exchange rate of US$1.00 = R$3.70.

A minimum mining width of 1.0 m for Pilar and 1.4m for Maria Lázara were used.

Bulk density of 2.77 t/m3 is used at the Pilar mine and 2.76 t/m3 at the Maria Lázara mine. At the Três Buracos deposit, density values used were 2.35 t/m3 (oxide) and 2.77 t/m3 (fresh rock).

Numbers may not add due to rounding.

Source of Technical Information and Qualified Persons

For further information regarding the mineral resource and mineral reserve estimates at Pilar, please see the Company’s technical report prepared in accordance with NI 43-101 entitled “Technical Report on the Pilar Operations, Goiás State, Brazil” by RPA and dated December 20, 2018 with an effective date of May 31, 2018. Mark B. Mathisen, C.P.G., Philip A. Geusebroek, P.Geo., Hugo M. Miranda, MBA, ChMC (RM), Robert L. Michaud, P.Eng., and Andrew P. Hampton, P.Eng. are the Qualified Persons that prepared or supervised the preparation of the information that forms the basis for the written disclosure regarding Pilar.